Brianne Gardner, Portfolio Manager & Senior Wealth Manager, Velocity Investment Partners, Raymond James
Focus: Canadian & U.S. large caps
Top picks: Constellation Energy, Microsoft, Boston Scientific
MARKET OUTLOOK:
As we approach year-end, stock markets are still sending mixed signals, making it tough to pin down a clear narrative. Growth has cooled, inflation is easing, and sentiment swings with every data release. Even so, investors are shifting from debating outcomes to preparing for a range of scenarios. And based on earnings resilience, steady spending, and policy support, we remain cautiously optimistic about the road ahead.
In the U.S., attention is moving from rates to what matters for 2025: the quality and durability of earnings. A big part of that conversation is the growing scrutiny around revenue circularity, especially in the AI and cloud ecosystem. Investors want to know how much growth true end-user demand versus companies is buying from each other.
That discipline is healthy. It rewards firms with real customer expansion, diversified revenue, and improving margins. Encouragingly, earnings revisions have turned positive again, with more companies guiding higher as productivity investments begin flowing through.
Canada’s path isn’t as fast, but it’s constructive. The economy has cooled, yet signs of stabilization are emerging. The Bank of Canada cuts already made, targeted fiscal support, and solid corporate balance sheets create a backdrop firmer than headlines suggest. The TSX still benefits from decent valuations and commodity exposure (energy, financials, industrials, and critical minerals) areas that tend to hold up well late in the cycle.
Heading into the new year, our view on portfolio positioning remains consistent: maintain neutral equity allocations, avoid zombie companies, lean on quality, and use volatility as opportunity to high grade the holdings. We think we have a couple good years ahead still, based on a few factors, including corporate earnings continuing to grow through 2026 and a US economy that should avoid a recession for another year or two.
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TOP PICKS:
Constellation Energy (CEG NASD)
We added Constellation Energy during the April tariff selloff, and it has quickly become one of the strongest contributors in our portfolios. Constellation is the largest producer of clean power in the U.S., supplying about 10 per cent of America’s carbon-free electricity to more than 16 million customers. The stability of the business stands out. Even when power markets get volatile, Constellation’s nuclear plants run with very high reliability, giving it earnings visibility most producers cannot match.
Growth is accelerating. The company has signed two major power deals with data centers, more than any other operator, and expects at least one more agreement soon. The long-term outlook is strong. Demand for always-on electricity keeps rising, and Constellation is guiding to double-digit earnings growth through 2030.
Microsoft (MSFT NASD)
Microsoft has been one of our best long-term holdings, and this short-term breather is just an opportunity to get all clients to full weight. Microsoft remains the heartbeat of enterprise cloud, AI is driving the next leg of growth. The new partnership with Anthropic expands Microsoft’s AI ecosystem and reduces dependence on any single model provider, which supports long-term innovation and flexibility. Anthropic also committed to purchase $30 billion of compute on Azure, giving Microsoft stronger visibility in cloud demand as companies continue ramping up AI workloads.
We’re not as worried about circularity here. Microsoft’s AI demand comes from thousands of enterprises using Azure and Office together, not from a tight fragile loop like OpenAI, Oracle and Nvidia. The growth is broad, not concentrated. The runway is still early. Most industries are just beginning to deploy AI tools, and Microsoft is positioned to benefit across cloud, productivity, software development and cybersecurity.
Boston Scientific (BSX NYSE)
Boston Scientific is a fairly recent addition for us, during the lows of September. They make less-invasive devices for heart issues and chronic pain, which is exactly where patient demand is moving. They’re becoming a leader in treating irregular heartbeats. Their Farapulse system has already helped more than 500,000 patients, and doctors like it because it’s faster and gentler. They’re also improving their stroke-prevention device for patients with irregular heartbeats, with a new version expected in 2027 to 2028.
Hospitals are choosing these solutions more often because patients recover quicker and get back to normal life faster, helping Boston Scientific gain market share. The business is financially solid. Strong margins give them room to keep investing in new technologies, supporting steady long-term growth as demand for less-invasive care rises and an aging population needing healthcare means an increasing customer base.
| Disclosure: | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| CEG NASD | Y | Y | Y |
| MSFT NASD | Y | Y | Y |
| BSX NYSE | Y | Y | Y |
PAST PICKS: MARCH 19, 2025
META PLATFORMS (META NASD)
Then: US$584.06
Now: US$642.76
Return: 10%
Total Return: 10%
COSTCO (COST NASD)
Then: US$904.05
Now: US$908.77
Return: 1%
Total Return: 1%
ELI LILLY (LLY NYSE)
Then: US$837.01
Now: US$1078.38
Return: 29%
Total Return: 29%
Total Return Average: 13%
| Disclosure: | Personal | Family | Portfolio/Fund |
|---|---|---|---|
| META NASD | Y | Y | Y |
| COST NASD | Y | Y | Y |
| LLY NYSE | Y | Y | Y |
